26 ❙ WATTPoultryUSA
Poultry, meat exports critical
for profitability in 2017
With more meat and poultry supplies on the market, exports of poultry,
beef and pork are key to U.S. chicken industry profitability in 2017.
BY BILL ROENIGK
E
xports may not be the only key to
the measure of success for poultry
and red meat producers in 2017, but
robust overseas sales will clearly be the most
critical component, according to the "Outlook
for Animal Protein and Feedstuffs" panel at
the National Chicken Council's annual conference in late October of 2016.
How strong the export tailwind proves to be
in the months ahead will depend on competitive
pricing in world markets, the strength of the
U.S. dollar, and the pace of economic growth in
major global destinations, said panel experts on
poultry, beef, pork and grains.
While abundant grain and oilseed crops in
the 2016-17 harvest should make navigating these
challenges more manageable, unexpected risks
always remain, they added.
Chicken firms operating with "new mindset"
U.S. and global grain stocks have been replenished thus providing a signal for a period of reduced feed cost volatility, Will Sawyer, analyst
for animal proteins with Rabobank, explained.
Drilling down on the export issue, Sawyer
predicted China will be the "biggest story" for
global poultry during the year ahead. But, will
U.S. poultry exporters "play a role" by participating in the significant increase of expected
imports China will need to fill the shortfall
being experienced in the Chinese domestic
chicken production?
Despite the China question, Sawyer sees
favorable poultry prices and producer net margins for U.S. chicken companies again in 2017.
He credits continued high prices of competing
meats for much of his optimistic outlook, albeit
www.WATTAgNet.com ❙ January 2017

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